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Politics : WAR on Terror. Will it engulf the Entire Middle East?
SPY 683.04-0.1%Dec 9 4:00 PM EST

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From: Peter Dierks1/24/2007 12:20:39 AM
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Israel unlocks Palestinian taxes in deal to exclude Hamas

ISRAEL will transfer £51 million in withheld Palestinian tax revenues to President Mahmoud Abbas today under a deal earmarking the funds for humanitarian needs and a US-backed security programme, Israeli officials said.

The officials said the money would not be used by Mr Abbas to make long-overdue salary payments to Palestinian public sector workers, hard hit by a western and Israeli embargo.

Israel's prime minister, Ehud Olmert, has been under US pressure to take steps to strengthen Mr Abbas and his Fatah-dominated presidential guard in their power struggle with Hamas, which took control of the Palestinian Authority in March.

On 23 December, Mr Olmert promised to hand over the funds and remove roadblocks in the occupied West Bank.

Since then Mr Abbas's allies have complained that Israel has been taking its time to deliver.

Mr Abbas, who met US secretary of state Condoleezza Rice in Ramallah, asked Washington to intervene. Ms Rice held talks with Mr Olmert on Monday.

An Israeli official said: "They [Israeli and Palestinian negotiators] found a mechanism to make sure it will not get to the Hamas government or the Hamas finance ministry."

Web links

Israeli Government
gov.il
Haaretz
haaretzdaily.com
Jerusalem Times
jerusalem-times.net

Related topic

Middle East conflict
news.scotsman.com
This article: news.scotsman.com

Last updated: 19-Jan-07 00:06 GMT
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